Irish milk production to continue on upward trajectory

Published 7 December 16

Irish milk production in 2017 is forecast to increase by 6% to more than 7bn litres, according to Teagasc’s (the Irish Agriculture and Food Development Authority) latest Outlook. This is on top of an estimated 5% increase in 2016.

Teagasc forecasts the average milk price in Ireland to rise 20% in 2017, to 32.2 cents per litre. This is currently equivalent to around 28ppl*. Despite lower or stable input costs, Teagasc expects higher input usage, leading to a marginal increase in production costs. Net margins on a per litre basis are forecasted to increase by 73% relative to 2016 to an average of 12.4 cents per litre (approximately 11ppl*).

 Irish milk production to continue on upward trajectory

Overall, it appears that Ireland’s ability to continue to expand relies on its milk producers weathering the storm over the last two years. As a result, the industry appears to be in a position to respond to a positive change in market conditions, should they occur as Teagasc is predicting.

* Based on an exchange rate of £1=€1.15